-- Posted Friday, 18 July 2008 | Digg This Article
| Source: GoldSeek.com
2002 Master Plan – Codename - Privatise the Profits & Socialise the losses.
Distribution to all Politburo members and the Connected Wall Street Oligarchs.
The last stock market bubble that we started to inflate in 1995 has now well and truly collapsed so it is now time for phase 2 of the master plan codenamed PRIVATISE THE PROFITS & SOCIALISE THE LOSSES.
We will aggressively drop interest rates, and put out a barrage of propaganda via our owned news media outlets that the People should aggressively buy property. Use lots of slogans such as “They are not making any more new land” “property only ever goes up” we will back this up with a host of property porn TV shows, or how I made $1,000,000 dollars in 5 minutes by flipping condos, the People always love a get rich quick scam.
The boys on Wall Street will then come up with some ingenious ways to “securitize” and “package” all of the new mortgages that are going to be written, because we will give out mortgages to anyone who is warm and breathing, and lets not actually check this criteria out. A lot of junk is going to be written.
Credit is supposed to facilitate the purchase of a property, but if you force enough credit into the market, this credit actually takes over and becomes the prime driver of property prices and ultimately to very insane levels. We create yet another bubble, and profit all the way.
Think of all the money we can make packaging up all these mortgages, and receiving all that interest. The people will be paying the vast majority of their income over to us in tribute or good old fashioned usury payments each month. Make certain that you get the fabulous profits “earned” transferred offshore, and preferably into other currencies.
When our latest scam inevitably collapses, as we alone create all of these bubbles, and heartache and misery as we parasite off the real economy. We will have to shift the propaganda into overdrive. The system, or more correctly OUR system is going to need “Help” and “Support” and is “Too big to fail” and if it does fail will create “Systemic Risk” make the people frightened yet again, so that they listen and go along with the new “bailout” scam.
Now all the losses will be socialised, not only will the people be paying us the interest on there huge mortgages that we created, but their taxes will have to rise as the Government pay our losses to “ Save the system”, or they will have to borrow more money from us by selling Bonds. The proceeds of these Bond sales will be paid back to us to cover our losses. And we can collect the interest payments on the new bonds sold to bail us out!!!
It is a win, win situation. We will make a fortune in the boom and our losses are insured by the Government via the indebted people in the bust.
Socialism in its finest and purest form.
When our last property bubble crashed with the Savings & Loans scandal we were also able to make off with most of the foreclosed property out of the back door so to speak. Theft would be a better word, yet another lucrative scam, history always keeps repeating itself for our profit and benefit.
Its only 2002, so lets get to work and create yet another bubble, and lets make this a big one.
I look at America today and my own country Great Bankerland and frankly I am completely appalled. We are the new Soviet Union. Does nobody realise that the policies they adopted of huge suffocating Government backed up with a vile security apparatus, run by, and for the sole benefit of a few closely connected families ended in RUINATION and DESTRUCTION of the Country? We are now making exactly the same mistakes.
What should happen is fantastically simple and beautiful in its ability to balance the forces of supply and demand. It is nowadays a long forgotten mechanism that used to be called THE FREE MARKET.
With this system Bankers who have acted like complete idiots over the last few years will go bankrupt, because that is the discipline, that is the punishment for reckless behaviour. However new Banks would form and emerge to fill the vacuum now vacated by the reckless and irresponsible banks, hopefully they would learn from the mistakes of the past and lend responsibly knowing full well that NO GOVERNMENT BAILOUTS will ever be available.
People who have also acted like complete idiots by purchasing property they could never afford, or now have a mortgage that is greater than the value of their property because of equity extraction to fund a lifestyle that again they could not afford are going to get hurt that is the FREE MARKET, it is the punishment for reckless behaviour. The unsustainable lifestyle not earned and saved for via real work will have to be paid back over the next 20 to 30 years as they are now part of the mortgage. It was short term gratification for those who participated, however they are now saddled with long term payments and all that compound interest. It is not clever, but that was their free choice and they should accept the consequences and take responsibility. The people that bought multiple properties thereby using too much leverage or margin in the hope of a short term gain, prime motivation being greed and unearned income will also feel the pain.
I have no problems whatsoever with bankers loaning money at interest for the purchase of cars, or flat screen TVs or anything else, and I repeat anything. However I have a huge problem with bankers pushing property prices to insane levels with the availability of unlimited credit which then becomes the prime driver of property prices, and then they sit back and parasite off the monthly interest payments. Houses are not just another speculation they are first and foremost a home the fundamental centre of the family, the most important unit in any society.
In the future serious restrictions need to be placed on any forms of secured property credit to maintain affordability and eliminate debt, to avoid another destructive property bubble from developing. Excessive Alcohol and Drug use is not good for any society we understand this fact, excessive credit is also equally dangerous, if not more so. Over the last few years many young people have been forced by the bankers to take on insane levels of credit simply to have a roof over their heads a basic human right called SHELTER, It is wrong it is USURY.
Prices will fall until ultimately the supply matches the demand, at that point the market will stabilise. I would like to think that after the Savings & Loans debacle which happened only 15 short years ago, and now the busting of this much larger property bubble lessons would be learned, but I am not at all hopeful.
People are putting their faith in Government to somehow DO SOMETHING, Governments only ever make any situation worse, the best thing they can do, is to do precisely nothing. It would be far better for all of us long term if the Government now went on holiday and left the free market to perform its duties. No bailouts are necessary; the free market will correct all imbalances in the most efficient way.
The real tragedy is that while the people were busy flipping over priced condos to each other the real economy has largely emigrated overseas primarily to Asia, I am afraid the terrible damage of this mad period will live with us all for many years to come.
When the Soviet Union collapsed another wacky command and control socialist state, the people some 20 years later are still living with the consequences of that failure. Ultimately with the Soviet Union the Government had no solutions and market forces prevailed. Big Government is always socialist in nature, and the only way, as in the Soviet Union, they can force the social order is to use terrorism against their own people. “Do as we say, or end up in Siberia”. In America and Britain we are now travelling down this very same doomed road. This Socialist system has a 100% failure record SO LETS NOT GO THERE.
Leave the people alone and leave the markets alone, and finally make the money REAL by linking it to some form of standard and not left to the decision of human beings, greed will always be too strong a motivator if we allow that, which is precisely why we are now in this mess.
-- Posted Friday, 18 July 2008 | Digg This Article | Source: GoldSeek.com
